Fast Kars has a return on equity of 22.3 percent,a profit margin of 14.2 percent,and total equity of $467,000.What is the net income?
A)$69,608
B)$113,875
C)$104,141
D)$66,314
E)$109,897

Question

Quizplus · Accepted Answer

We can use the formula: 
Return on Equity = Net Income/Total Equity

Rearranging the formula, we get: 
Net Income = Return on Equity x Total Equity

Plugging in the values, we get: 
Net Income = 0.223 x $467,000 = $104,141

Therefore, the answer is choice C.

Fast Kars Has a Return on Equity of 22